Consumers demands and mandates (both existing and expected)
are the major drivers for the connected car market. Most of the major economies
have already introduced one mandate or the other such as eCall in Europe and
GLONASS in Russia. No wonder most of the industry experts opine that the
connected car is all set to be the next big thing in the automotive industry.
Future generations will rely more on cloud-based backend systems for content,
information, and services. This turning of car into a huge data repository will
open new avenues of business opportunities for service industries such as
insurance and content providers such as Spotify (U.K.).

The global
connected car market shipments are expected to reach 59.86 million units and
likely to reach $ 98.42 billion by 2018. In terms of connectivity technologies,
LTE will be the main connectivity solution; especially when the vehicle is in
motion. Currently, the mobile networks are providing good coverage in all the
metropolitan areas, although connectivity remains a problem in rural areas,
which will impact the usability of cloud services. Wi-Fi has its place as
vehicle to infrastructure connectivity when the vehicle is parked. It can be
used for functions such as software updates, downloading maps, and content.
Wi-Fi is a cost-effective alternative because it does not incur data volume
costs as LTE does.

The market
presents direct revenue channel from applications, services, and content.
Industry experts believe that if it is done right, software updates will become
the major revenue generator since people are willing to pay for them if they
are reasonably priced. Software can keep the car up-to-date even if it is not
the latest model anymore and essentially tied to the regular maintenance of the
vehicle.

The future
remains to be seen and will depend on how much the automotive companies open up
their systems for third party developers. However, car manufacturers need to standardize
on common solutions to drive the market and open systems to create the
necessary critical mass among app developers.

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